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The Toyota forklift shown in Figure 1 is amortized for 7 years. The fuel cost is estimated to be $ 1 5 per 8 hour

The Toyota forklift shown in Figure 1 is amortized for 7 years. The fuel cost is estimated to be $15 per
8 hour of operation, and the maintenance cost is estimated to be $2.00 per hour. The operator is paid
according to Ontario forklift operator wage of $16.88 per hour per hour (including fringe benefits) and
the truck operates 330 days a year. If the truck travels an average of 84,400 ft. per day (equivalent of 2
miles per hour; at 8 hour per day), determine the cost per foot. (Note: 1 mph =5280 ft./hour)
Figure 1 Toyota 8FGU25 datasheet
(2) Deluxe Electric Pallet Truck from Uline Canada has the specifications shown in Figure 2. The pallet truck
is amortized for 7 years. The maintenance cost is estimated to be $1.50 per hour. The operator works 8
hour of operation per day and is paid according to Ontario minimum wage of $15.00 per hour (including
fringe benefits) and the truck operates 330 days a year. If the truck travels an average of 32,800 ft. per
day (based on average walking speed of about 3.1 miles per hour (mph); averaging 2 hours per day),
determine the cost per foot. (Note: Deluxe Electric Pallet Truck has 6 hours service per charge: four 6 volt,
224 Ah maintenance-free batteries with built-in charger.)(1 mph =5280 ft./hour)
What if electricity costs $0.11 per kilowatt-hour, charging an all-electric vehicle (assuming a fully
depleted 24 kWh battery) will cost about $2.64 to reach a full charge each day?
Figure 2 Deluxe Electric Pallet Truck datasheet
Sheridan Institute of Technology TECH50199: Plant Layout Dr Godfrey Onwubolu, CEng, PEng
2
(3) Fortune Filling Inc., in their strategic plan seeks to replace their current blending stations with ones
that do not require lifting of items to be blended. Accordingly, the company is considering purchasing a
pallet truck (Figure 1a) or a forklift truck (Figure 1b) for use in transportation of item-A (minor items) and
item-B (shortening cubes) from Ingredients and Packaging Storage Area (IPSA) to Blending Area (BA) and
Shortening Tempering Area (STA) respectively (see Figure 2). Pertinent sizes and cost for these are listed
in the Tables A.1 and A.2. The loading and unloading cost includes not only the cost of loading/unloading
for one trip, but also the cost for making the return trip to pick up another load. Recommend the optimum
method of transporting the items based on the Least Cost Method. Assume shipping takes place every 2
days.
Table A.1. Characteristics
Item From To Volume (L x W x H)
(inches)
Distance
(feet)
Units Received
per Day
A (other items) IPSA BA 64 x 48 x 488023
B (shortening
cubes)
IPSA STA 64 x 48 x 24608
Table A.2. Equipment specifications
Equipment Maximum
Volume
(cubic inches)
Loading and
Unloading Cost
($)
Cost/Foot
($)
Pallet truck (pallet)64 x 48 x 480.40/trip 0.004
Forklift tractor (pallet)64 x 48 x 480.04/trip 0.008
(a) Pallet truck (b) Forklift
Figure 1 Material handling equipment that Fortune Filling Inc. is considering

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